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Gov. Akpabio seeks approval for N80 billion loan to use in paying up old loan

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Gov. Akpabio seeks approval for N80 billion loan to use in paying up old loan

by Dare Lawal

Gov. Godswill Akpabio of Akwa Ibom, the chairman of the PDP Governors’ Forum, who has gained notoriety this year due to his penchant for spending indiscriminately, says he needs some more money. So he’s written to the Akwa Ibom House of Assembly to approve for the State Government to obtain a loan of N80 billion from the bank.

This whopping N80 billion is to be used to offset a loan which the state collected in 2012 from United Bank for Africa (UBA).

In a letter which Akpabio sent to the Clerk of the Assembly, Mandu Umoren, and read at the floor of the house, Akpabio said:

“I, hereby, request for your speedy consideration and approval of the house of my request to borrow $500 million dollars (about N80 billion) from the Standard Chartered Bank International.

“The proceeds of this loan facility will be utilised to offset all outstanding loan commitment of the State Government to UBA Plc.

“This will drastically reduce the applicable interest that government will have paid on the facility from UBA Plc which runs into billions of naira,” he said.

The new loan would be collected from Standard Chartered bank international at 8.19 per cent interest, which is substantially less than the 18.5 per cent interest rate for which Akpabio accessed the 2012 UBA loan.

The Speaker, Samuel Ikon, directed that the letter be referred to the House Committee on Appropriation and Finance, for in depth work and report back to the house as soon as possible.

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